4Q16 Global ISG Index

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Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic
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Global Combined Sourcing and
As-a-Service Market Insights
Hosted by:
Louis Miscioscia, CLSA
12 January 2017
FOURTH QUARTER AND FULL-YEAR 2016

ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved 2
GLOBAL 4Q16
Covering the state of the
combined sourcing and as-a-
service industry for global,
commercial contracts.
Welcome
to the 57th
Quarterly
ISG Index
John Keppel
Partner and President
Esteban Herrera
Partner
Stanton Jones
Research Director and
Principal Analyst

GLOBAL 4Q16
*Contracts with ACV ≥ $5M from the ISG Contracts Knowledgebase®
At a Glance
Full-year Combined Market ACV up 9% driven
by 38% growth in As-a-Service segment
4Q Combined Market down 5% Y/Y; Traditional Sourcing
space falls short, despite gains in As-a-Service
Americas 4Q up Y/Y on strength
in As-a-Service space
EMEA down Y/Y in 4Q; Traditional Sourcing slows in ITO
and in the largest geographies
Asia Pacific 4Q up 15% Y/Y; both SaaS and IaaS 2016
ACV growth outpace that seen in other regions
Scorecard
4Q16 4Q Y/Y 4Q Q/Q 2016 Y/Y
ACV ($B)* Change Change ACV ($B)* Change
Global Combined Market $ 9.6 -5% 3% $ 37.4 9%
By Type Outsourcing $ 5.2 -25% -8% $ 22.9 -4%
As-a-Service $ 4.4 38% 23% $ 14.5 38%
By Service ITO $ 3.2 -39% -26% $ 16.3 -5%
BPO $ 2.0 23% 53% $ 6.5 -2%
IaaS $ 3.3 70% 31% $ 10.0 54%
SaaS $ 1.1 -12% 3% $ 4.6 13%
By Region Americas $ 4.7 5% 9% $ 18.4 14%
EMEA $ 3.8 -19% -2% $ 14.7 2%
Asia Pacific $ 1.1 15% 3% $ 4.3 16%

GLOBAL 4Q16
$22.8$23.8$26.2
$14.6$10.6$8.2
$37.4
$34.4$34.4
201620152014
As-a-Service ACV Outsourcing ACV
$133.9 $134.5 $134.5 $129.1
$31.6 $40.8 $52.8 $66.2$16.8 $21.9
$28.4 $38.3$182.3
$197.1
$215.7
$233.7
2013 2014 2015 2016
Outsourcing Market SaaS Market IaaS Market
$19.7
$17.1 $16.3
$6.5 $6.7 $6.5
$3.0 $4.0 $4.6 $5.1
$6.5
$10.0
2015 20162014
ITO BPO SaaS IaaS
$5.2$5.7$5.6$6.3$6.9$5.5$6.2$5.2
$6.8
$4.4$3.7$3.1
$3.4$3.2
$3.0$2.3
$2.1
$2.1
$9.6$9.4$8.7
$9.7$10.1
$8.5$8.5
$7.3
$8.9
4Q163Q2Q1Q4Q153Q2Q1Q4Q14
Global Combined Market Contracting Trends
2016 Combined Market up 9% over last year with as-a-service leading the way, up almost 38% over 2015.
Traditional Sourcing uneven in the midst of a structural change with increasing activity moving to the cloud.
Global Combined Quarterly ACV ($B) Global Combined Full-Year ACV ($B)
Global Combined Full-Year ACV by Type ($B) Global Market Size ($B)

GLOBAL 4Q16
$9.9$9.9$10.1
$8.5$6.2$4.8
$18.4
$16.1$14.8
201620152014
As-a-Service Outsourcing
$47.8 $47.4 $49.5 $47.6
$20.8 $26.9 $34.7 $43.4$11.0
$13.8
$17.3
$22.8$79.7
$88.1
$101.5
$113.9
2013 2014 2015 2016
$6.5 $6.8 $7.2
$3.5 $3.2
$2.7
$1.5 $1.6
$3.0
$2.1 $2.3
$5.5
2015 20162014
ITO BPO SaaS IaaS
$2.2$2.3$2.6$2.8$2.6$2.3$2.8$2.2$2.7
$2.5$2.1$1.9$2.0$1.9
$1.7$1.3
$1.2
$1.2
$4.7
$4.3$4.5$4.8$4.5
$4.0$4.1
$3.4
$3.9
4Q163Q2Q1Q4Q153Q2Q1Q4Q14
Americas Combined Market Contracting Trends
2016 Combined Market up 14% versus 2015; Both ITO and IaaS post solid ACV increases.
As-a-service ACV continues to close the gap with Traditional Sourcing’.
Americas Combined Quarterly ACV ($B) Americas Combined Full-Year ACV ($B)
Americas Combined Full-Year ACV by Type ($B) Americas Market Size ($B)

GLOBAL 4Q16
Our Contracts Knowledgebase®
is used to determine placements
based on the annual value of
commercial contracts
awarded in the past 12 months.
Outsourcing Market
Atento
L&T Infotech
Luxoft
Mindtree
Mphasis
SITEL
Sutherland Global
Synacor
TeleTech
VirtusaPolaris
As-a-Service Market
CyrusOne
Digital Realty
IPSOFT
ServiceNow
Workday
Outsourcing Market
CGI
CompuCom
Convergys
DST Systems
Genpact
HCL
Infosys
Tech Mahindra
Wipro
As-a-Service Market
Adobe Systems
Equinix
FIS Global
Iron Mountain
Rackspace
Salesforce.com
Outsourcing Market
Accenture
Capgemini
Cognizant
CSC
HPE
IBM
NTT Data
SYNNEX
TCS
T-Systems
As-a-Service Market
Amazon Web Services
Google
Microsoft
Oracle
SAP
The Building 15 The Breakthrough 15The Big 15
Co. Revenues > $10 B
Sourcing Standouts
AMERICAS Co. Revenues $2 -10 B Co. Revenues < $2 B
Providers in alphabetical order; no rankings implied. Revenues sourced from Hoovers and individual company financial fillings.
the
ISG15

GLOBAL 4Q16
$2.31
$1.34
$1.06
$1.28 $1.20
$0.70
$0.88
$0.56 $0.54
$0.0
$0.5
$1.0
$1.5
$2.0
$2.5
$3.0
Financial Services Manufacturing Telecom & Media Healthcare & Pharma Business Services Energy Consumer Packaged
Goods
Travel, Transport &
Leisure
Retail
Range of Prior 5 Years Avg of Prior 5 Years 2015 2016
$0.58
$0.31
$0.14 $0.07$0.0
$0.2
$0.4
$0.6
$0.8
$1.0
Canada Brazil Other LatAm Mexico
Americas Traditional Outsourcing Award Trends
Financial Services and Healthcare markets post moderate gains in the Traditional Sourcing space,
while Energy companies still face the headwinds of low commodity prices.
Americas Sub-Region Full-Year ACV ($B) - Traditional Outsourcing Only
Americas Industry Full-Year ACV ($B) - Traditional Outsourcing Only
$8.78
$0.0
$2.0
$4.0
$6.0
$8.0
$10.0
U.S.

GLOBAL 4Q16
$2.0$2.2
$3.3
$2.3$1.5
$1.1
$4.3
$3.8
$4.4
201620152014
As-a-Service Contracts Outsourcing Contracts
$18.3 $19.1 $18.5 $17.8
$3.0 $3.9 $5.1 $6.5$2.0
$2.9 $4.0 $5.9$23.3
$25.9 $27.6
$30.2
2013 2014 2015 2016
$2.7
$1.6
$1.4
$0.5 $0.6 $0.6
$0.3 $0.4 $0.5
$0.8
$1.1
$1.8
2015 20162014
ITO BPO SaaS IaaS
$0.4$0.5$0.6$0.5$0.5$0.5$0.6$0.6
$0.7
$0.7$0.6$0.5
$0.5$0.5$0.4$0.3$0.3
$0.3
$1.1$1.1$1.1
$1.0$1.0$1.0
$0.9$0.9
$1.0
4Q163Q2Q1Q4Q153Q2Q1Q4Q14
Asia Pacific Combined Market Contracting Trends
2016 Combined Market up 15% over 2015; As-a-Service growth in both SaaS and IaaS segments is highest of the three major regions;
As-a-Service ACV for the year overtakes Traditional Sourcing.
Asia Pacific Combined Quarterly ACV ($B) Asia Pacific Combined Full-Year ACV ($B)
Asia Pacific Combined Full-Year ACV by Type ($B) Asia Pacific Market Size ($B)

GLOBAL 4Q16
Outsourcing Market
Ajilon
Ebix
Insurity
Interactive
KPIT Technologies
Luxoft
Posco ICT
Sutherland Global
WNS
As-a-Service Market
Digital Realty
IPSOFT
Kingdee
ServiceNow
Xero
Zoho
Outsourcing Market
Amadeus
Avaya
HCL
Infosys
Optus
Sabre
Tech Mahindra
Unisys
Wipro
As-a-Service Market
Adobe Systems
Equinix
FIS Global
Iron Mountain
Rackspace
Salesforce.com
Outsourcing Market
BT
Capgemini
Cognizant
Fujitsu
HPE
IBM
Sodexho
TCS
As-a-Service Market
Alibaba
Amazon Web Services
Google
Microsoft
NTT Data
Oracle
SAP
Sourcing Standouts
Asia Pacific Co. Revenues $2 -10 B Co. Revenues < $2 B
the
ISG15

GLOBAL 4Q16
$0.61
$0.37
$0.52
$0.21
$0.10 $0.12
$0.00 $0.04 $0.04$0.0
$0.3
$0.5
$0.8
$1.0
$1.3
$1.5
Telecom & Media Financial Services Manufacturing Travel, Transport &
Leisure
Energy Business Services Consumer Packaged
Goods
Healthcare & Pharma Retail
$0.90
$0.40
$0.23
$0.12 $0.25 $0.11
$0.0
$0.3
$0.5
$0.8
$1.0
$1.3
$1.5
$1.8
ANZ India and South Asia Japan Greater China Southeast Asia South Korea
Asia Pacific Traditional Outsourcing Award Trends
ANZ rebounds in 2016, up almost 30%, while India ACV continues to pull back;
Telco rises 12% in 2016, but most major industry verticals fall below their prior-five-year averages.
Asia Pacific Sub-Region Full-Year ACV ($B) - Traditional Outsourcing Only
Asia Pacific Industry Full-Year ACV ($B) - Traditional Outsourcing Only

GLOBAL 4Q16
$10.9$11.7$12.9
$3.8$2.8$2.3
$14.7$14.5$15.1
201620152014
As-a-Service Outsourcing
$67.8 $68.0 $66.4 $63.7
$7.8
$10.0 $13.1 $16.3$3.7 $5.2 $7.0 $9.7
$79.3 $83.2 $86.5 $89.7
2013 2014 2015 2016
$10.4
$8.7
$7.8
$2.5 $2.9 $3.1
$0.7 $1.0 $1.1 $1.5 $1.8
$2.7
2015 20162014
ITO BPO SaaS IaaS
$2.6$3.0$2.2
$3.1
$3.8
$2.7$2.8$2.4
$3.4
$1.2$0.9
$0.8
$0.9
$0.8
$0.8$0.6
$0.6
$0.6
$3.8$3.9
$3.0
$4.0
$4.6
$3.5$3.4
$3.0
$4.0
4Q163Q2Q1Q4Q153Q2Q1Q4Q14
EMEA Combined Market Contracting Trends
2016 Combined Market in EMEA ticks upward, 1.5% versus last year;
As-a-Service gains, up 42% off a small base, will continue momentum and we expect Combined Market growth in 2017.
EMEA Combined Quarterly ACV ($B) EMEA Combined Full-Year ACV ($B)
EMEA Combined Full-Year ACV by Type ($B) EMEA Market Size ($B)

GLOBAL 4Q16
Outsourcing Market
Atento
Datagroup
EVRY
Frontica Business Solutions
GFI Informatique
Luxoft
Mindtree
NGA Human Resources
NNIT A/S
SIA
VirtusaPolaris
Webhelp
WNS
As-a-Service Market
Digital Realty
Interxion
Outsourcing Market
Amdocs
Arvato
Capita
Carillion
CGI
HCL
Infosys
Interserve
Jones Lang LaSalle
Orange Business Services
Tieto
Wipro
As-a-Service Market
Adobe Systems
Equinix
Salesforce.com
Outsourcing Market
Accenture
Atos
Capgemini
Cognizant
CSC
HPE
IBM
NTT DATA
TCS
T-Systems
As-a-Service Market
Amazon Web Services
SAP
Google
Microsoft
Oracle
Sourcing Standouts
EMEA Co. Revenues $2 -10 B Co. Revenues < $2 B
the
ISG15

GLOBAL 4Q16
$2.89
$2.30
$1.51
$0.92
$1.75
$0.56 $0.49 $0.26 $0.32
$0.0
$1.0
$2.0
$3.0
$4.0
$5.0
Financial Services Manufacturing Energy Travel, Transport &
Leisure
Telecom & Media Business Services Retail Consumer Packaged
Goods
Healthcare & Pharma
$3.34 $3.22
$1.39
$0.46 $0.70
$1.34
$0.45 $0.10$0.0
$2.0
$4.0
$6.0
$8.0
U.K. & Ireland DACH Nordics Benelux France Southern Europe Africa & Middle East E. Europe & Russia
EMEA Traditional Outsourcing Award Trends
Traditional Sourcing Activity is uneven due to sluggish results in the UK and DACH.
Continuing softness across most major industries contributes to the annual shortfall.
EMEA Sub-Region Full-Year ACV ($B) - Traditional Outsourcing Only
EMEA Industry Full-Year ACV ($B) - Traditional Outsourcing Only

GLOBAL 4Q16
The Digital Labor Imperative
Stanton Jones
Research Director and Principal Analyst
4Q16 Index Inside Track from

GLOBAL 4Q16
A virtualized human workforce — working faster, with better quality, for less cost
What is Digital Labor?
Level 1 Digital Workforce
Automates standard, repeatable
processes
● Semi-structured data – invoices, help-desk tickets
● Key Technology: Expert System
● Data that changes quickly, and requires a decision
such as in IT operations or in fraud detection
Designed for variations
Machine learning for faster, better
problem solving
● Structured data – think spreadsheets
● Key Technology: RPA
● Rule-based process – like HR and F&A
● Unstructured data – e-mail and chat
● Key technology: Machine learning
● Starting to see many proof-of-concept projects
emerge

GLOBAL 4Q16
Digital Labor Benefits Enterprises and Providers
Leading Beverage Manufacturer
L3 predicts which drinks sell by market
Revenues
30%↑
Large Financial Services Firm
L2 builds a digital IT organization
Incident Resolution
from 4 hours
to 10 minutes↓
Large Enterprises
are building out their digital workforces via
internal initiatives with purchased software
Global Telecom Company
L1 automates procure to pay 50%↓
FTEs
ISG Automation Index™
Studies Provider ITO Productivity
Service Providers
are increasingly doing a lot more, with a lot less
by building out their digital workforces
30%
85%
100%
Applications Network
Components
Devices
% Increase in Number
Managed per Resource

GLOBAL 4Q16
Market Rewards Providers Who Grow in Two Ways
● Digital Labor impacts the bottom line.
● Need to grow digital labor faster than downward
pressure on rates.
● Digital labor scales up quickly enabling smaller
providers to compete for big business.
But digital workforce productivity improvements are not enough!
Capture Your
Client’s
Discretionary
Spend
Traditional sourcing flattens
Pricing pressure on big providers due to
growth in Digital Workforce
for top line growth Develop Digital transformation solutions and
Platform Services that will help your client grow their revenues in the future
for bottom line growth Develop a credible digital workforce to help
your clients reduce current costs and avoid future ones
$

GLOBAL 4Q16
4Q/FY 2016 ISG Index - Global Summary and Outlook
● 2016 Y/Y ACV increases 9%. As-a-Service solutions are the buyers’ choice.
● Americas growth came from both traditional ITO and Infrastructure-as-a-Service; As-a-Service
spending doesn’t have to come at the expense of Traditional Sourcing.
● EMEA As-a-Service is in the early stages. Traditional Sourcing ACV has been uneven.
● Asia Pacific As-a-Service accounts for more than half of the ACV this year.
● We forecast double-digit Combined Market growth in 2017.
● Expect As-a-Service growth in all three regions, with momentum building in EMEA due to public cloud
expansion.
● Traditional Sourcing will have to find it’s footing as spending moves to business-led digital initiatives.
Summary
Outlook

GLOBAL 4Q16
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GLOBAL 4Q16
isg-one.com
Learn More
Paul Reynolds
Partner & Chief Research Officer
ISG Momentum
+1 508 625 2194
paul.reynolds@isg-one.com
John Keppel
Partner and President
+44 (0)7879 432 212
john.keppel@isg-one.com
Will Thoretz
Americas Media Contact
+1 203 517 3119
will.thoretz@isg-one.com
Denise Colgan
EMEA and AP Media Contact
+44 1737 371523
denise.colgan@isg-one.com
Bill McNee
CEO Saugatuck Technologies
an ISG Business
+1 203 820 8987
bill.mcnee@
saugatucktechnology.com

GLOBAL 4Q16
GLOBAL 4Q16
Appendix: Score Card for TCV
FOURTH QUARTER AND FULL-YEAR 2016

GLOBAL 4Q16
4Q/FY 2016 TCV Scorecard – Traditional Outsourcing Market Only
The ISG Outsourcing Index has moved to ACV as the primary measure of the Broader Market.
We will continue to provide a high-level TCV view of the market via a Scorecard analysis.
*Contracts with TCV ≥ $25M from the ISG Contracts Knowledgebase®
Scorecard
4Q16 4Q Y/Y 4Q Q/Q 2016 Y/Y
TCV ($B)* Change Change TCV ($B)* Change
Global Outsourcing $ 15.9 -37% -22% $ 76.9 -13%
New Scope $ 9.2 -35% -31% $ 48.6 -19%
Restructurings $ 6.7 -40% -4% $ 28.3 -1%
Mega-deals $ 1.0 -82% -64% $ 7.4 -30%
ITO $ 10.0 -48% -32% $ 52.9 -16%
BPO $ 5.9 -4% 5% $ 24.0 -6%
Americas $ 5.5 -40% -36% $ 30.4 -5%
EMEA $ 9.2 -37% -3% $ 38.3 -20%
Asia Pacific $ 1.2 -17% -44% $ 8.2 -6%

ISG Confidential. © 2017 Information Services Group, Inc. All Rights Reserved.
Proprietary and Confidential. No part of this document may be reproduced in any form or by any electronic
or mechanical means, including information storage and retrieval devices or systems, without prior written
permission from Information Services Group, Inc.
isg-one.com
ISG (Information Services Group) (NASDAQ: III) is a leading global technology research and advisory
firm. A trusted business partner to more than 700 clients, including 75 of the top 100 enterprises in the
world, ISG is committed to helping corporations, public sector organizations, and service and technology
providers achieve operational excellence and faster growth. The firm specializes in digital
transformation services, including automation, cloud and data analytics; sourcing advisory; managed
governance and risk services; network carrier services; technology strategy and operations design;
change management; market intelligence and technology research and analysis. Founded in 2006, and
based in Stamford, Conn., ISG employs more than 1,300 professionals operating in more than 20
countries—a global team known for its innovative thinking, market influence, deep industry and
technology expertise, and world-class research and analytical capabilities based on the industry’s most
comprehensive marketplace data.

4Q16 Global ISG Index

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4Q16 Global ISG Index